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EURC

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U.S.-based cryptocurrency exchange Coinbase will soon remove all non-compliant stablecoins from its European exchange, according to an Oct. 4&nbsp;<a style="text-decoration:none" href="https://www.reuters.com/technology/coinbase-delist-some-stablecoins-europe-ahead-new-regulations-2024-10-04/">Reuters report</a>. It is part of the company's preparations to comply with the European Union's new regulations on crypto-assets (MiCA).&nbsp;
Coinbase’s decision to delist these stablecoins, including Tether’s USDT, aims to ensure that the platform meets the strict regulatory standards set by the EU.
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Users in the EEA will be able to convert their holdings of unauthorized stablecoins to compliant alternatives by December 30, with further details expected in November. Coinbase’s second-largest stablecoin issuer, Circle, remains a primary option for users transitioning to MiCA-compliant assets.
<h2 dir="ltr" id="span-span-mica-compliance-and-the-december-deadline-span-span">MiCA Compliance and the December Deadline</h2>
The MiCA framework, which took effect in June for stablecoin issuers, requires companies to hold e-money authorization in at least one EU member state to operate within the bloc. These rules are reportedly designed to protect users while promoting innovation within the crypto space.&nbsp;
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Exchanges like Coinbase must follow additional guidelines starting December 31, and the company has announced it will restrict services related to non-compliant stablecoins by December 30.
<h2 dir="ltr" id="span-span-impact-on-tether-and-other-stablecoins-span-span">Impact on Tether and Other Stablecoins</h2>
One of the most significant stablecoins affected by Coinbase’s decision is Tether (USDT), the largest stablecoin by market cap. Tether has yet to secure an e-money license in the EU, and this regulatory shortfall could force the delisting of USDT from Coinbase's European platform.&nbsp;
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Paolo Ardoino, CEO of Tether, has expressed concerns about the impact of stringent cash reserve requirements on both banks and digital assets.&nbsp;
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While Tether faces potential delisting, other stablecoins like Circle's USDC and EURC are safe from these changes. Circle became the&nbsp;<a style="text-decoration:none" href="https://www.circle.com/en/pressroom/circle-is-first-global-stablecoin-issuer-to-comply-with-mica-eus-landmark-crypto-law">first global stablecoin</a> issuer to receive an Electronic Money Institution (EMI) license in the EU, securing its position in the region.&nbsp;
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Coinbase&nbsp;<a style="text-decoration:none" href="https://www.bloomberg.com/news/articles/2024-10-04/coinbase-to-delist-non-compliant-stablecoins-in-eu-in-december">confirmed to Bloomberg</a> that the exchange will provide users with updates in November about how to convert their holdings to compliant alternatives.&nbsp;
<h2 dir="ltr" id="span-span-preparing-for-regulatory-shifts-span-span">Preparing for Regulatory Shifts</h2>
Other major exchanges, such as&nbsp;<a style="text-decoration:none" href="https://www.binance.com/en/support/announcement/mica-stablecoin-rules-implementation-announcement-884c621e335540e0add5fdce31597121">Binance</a> and Bitstamp, have also begun restricting stablecoins that don't meet MiCA's requirements.&nbsp;
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In June, Bitstamp removed Tether’s Euro-pegged stablecoin EURT for non-compliance, setting the stage for what could become an industry-wide shift. Binance is similarly adjusting its stablecoin offerings to ensure full compliance with the EU’s new rules.
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As MiCA regulations extend to crypto service providers starting December 31, Coinbase has already designated Ireland as its hub for MiCA compliance.

Coinbase to Delist Non-Compliant Stablecoins in EU by December

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